As South Africans sat waiting for a resolution of the hostage situation with President Jacob Zuma, it was easy to miss a number of developments sweeping through our investment markets, none of them positive. Despite some enthusiasm for SA generated by Cyril Ramaphosa’s ascent to power, we could not escape unscathed by the massive sell-off in US equity markets, which translated into a similar sell-off in South African equities. We have become used to our savings generating consistently positive returns to the point of complacency. But now that central banks worldwide are withdrawing their supportive measures, such as low rates and massive injections of cash into their economies, we should expect the unexpected. Quantitative easing was phase one of a massive global economic experiment. The withdrawal of liquidity will be phase two. One thing is certain: we must prepare for a lot more volatility. That means risk management becomes key when managing investments. Apart from a general sel...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now